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Chavin Company had the following results during August: net operating income, $350,000; turnover, 2; and return on investment (ROI) 24%. Chavin Company's average operating assets were:

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Ritmeks

Answer:

$1,458,333.33

Explanation:

Chavin company has a net operating income of $350,000

The turnover is 2

The return on investment is 24%

= 24/100

= 0.24

Therefore, the average operating assets can be calculated as follows

ROI= Net operating income/Average assets

0.24= $350,000/average assets

Average assets= $350,000/0.24

= $1,458,333.33

Hence the Chavin's company average operating assets were $1,458,333.33

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